Introduction – Tony Garrant , Acting State Classification Officer
Workforce and Succession Planning – The Quiet Crisis Barry Nelson , Abacos Group/Softscape, Inc.
Eric Young , Assistant Deputy Executive Director for Human Resources – TEXAS YOUTH COMMISSION
Albert Betts, Jr., Senior Associate Commissioner, Chief of Staff – TEXAS DEPARTMENT OF INSURANCE
Stephanie S. Newberg, Deputy Commissioner – TEXAS DEPARTMENT OF BANKING
Gene Crump, Jr., Deputy Executive Director – TEXAS WORKFORCE COMMISSION
Human Capital Management Succession and Workforce Planning The Quiet Crisis Barry W. Nelson Managing Director, Abacos Group, Ltd.
To Be Covered
Key issues :
Why organizations will increasingly need workforce and succession planning programs.
Assess how ready your organization is for such a planning effort.
How workforce and succession planning is defined, and what misconceptions of it are common.
Understanding a step-by-step approach that can be used to establish and operate a systematic workforce/succession planning system.
Why Even Bother
Strategic workforce planning is not an episodic activity that has to be done to assure some level of compliance…It also is not an option….
Strategic workforce planning is an integral part of how one must do business to survive.
It is a management practice and an imperative
It is how we anticipate and proactively manage our human capital resources
“ Effective management of our human resources is the last source of increasing our competitive advantage,…as too few organizations are very good at it !” - Peter Drucker
Key Drivers of Workforce Planning
Dramatic population change
Individual and organizational performance concerns
Generational differences in career motivation and work life expectations
Desire to improve employee retention of high-talent workers and protected class workers
Emerging need to retain older workers
Other business conditions that are driving organizations to establish systematic succession programs ?
Population Trends Source : Poulos, S., & Nightingale, D. The Aging Baby Boom: Implications for and Training Programs . Washington: The Urban Institute. http://www.urban.org/aging/abb/agingbaby.html#exhII1 Prepared under contract for the U.S. government.
Population Trends Source : Poulos, S., & Nightingale, D. The Aging Baby Boom: Implications for and Training Programs . Washington: The Urban Institute. http://www.urban.org/aging/abb/agingbaby.html#exhII1 Prepared under contract for the U.S. government .
Let’s Test Your Readiness?
Please answer “yes” or “no” on each of the following :
Analysis reveals that the organization will lose a high percentage of senior management talent due to retirement or other reasons in the near term (5-7 years)
The organization has no way to respond to sudden losses of key talent
Traditional cycle time for finding replacements for key people is unknown--or too long
Managers are complaining of difficulty finding people ready for promotion or willing to assume more responsibility
Women, minorities, and other protected groups are not adequately represented at various levels and in various functions throughout the organization
Critical turnover is too high
The Executive Director of your organization is willing to take a hands-on approach to succession planning and is unwilling to delegate it completely to the HR Department
The more times you said “yes,” the more “ready” your organization is.
Keeping It Simple
Workforce Planning is anticipating human capital needs and assuring you have the human resources to operate effectively. At time of first implementation, it usually means quantitative measures.
Succession Planning speaks more to individuals with certain attributes, qualities and abilities capable of taking over specific role responsibilities as they become available. It speaks to both quantitative and qualitative measures.
Keeping It Simple
Workforce and Succession Management assumes a continuing effort to prepare people for the future through their daily work. It is not a one-time-a-year activity.
Workforce and Succession Management is the process that helps ensure the stability of tenure of personnel. It is perhaps best understood as any effort designed to ensure the continued effective performance of an organization, division, department or work group by making provision for the development, replacement, and strategic application of key people over time.
Keeping It Simple Step 1: Make the Commitment Step 7: Evaluate the Program Step 6: Close Developmental Gaps Step 2: Assess Present Work Requirements Step 3: Evaluate Current Performance Step 4: Determine Future Work Requirements Step 5: Assess Potential
Keeping It Simple
Workforce and Succession Management requires human capital management database systems that are integrated and share information across a variety of HR activities
Starting is not an option, it’s a survival strategy.
Make Workforce and Succession Management an integral part of how you conduct business.
You are proactively managing the culture/climate of your organization and this influences overall performance.
Learn from each others “best practices”.
- Thank You -
TEXAS YOUTH COMMISSION SUCCESSION PLAN MODEL OVERVIEW Eric Young Assistant Deputy Executive Director for Human Resources
WHY SUCCESSION PLANNING?
The workforce is aging. Retirements will increase over the next few years.
Over the next five years, 80% of TYC’s management level employees will become eligible for retirement , resulting in a critical loss of institutional knowledge, key positions and expertise.
Management development and succession planning will become crucial elements in the TYC workforce plan.
WHY SUCCESSION PLANNING?
As the agency faces succession issues, programs may have to be redesigned, and TYC staffing could be effected.
Executive leadership must be prepared to provide assistance in addressing the changing staffing needs.
Executive leadership’s partnership in solving these difficult and complex problems will be crucial.
WHY SUCCESSION PLANNING?
In order to ensure that our succession plan becomes an inherent part of TYC culture, active participation from all levels of our organization is essential. This includes management and employees, with HR acting as facilitator .
The Texas Youth Commission must be committed to preparing our staff for future key positions in the agency by offering appropriate training and development opportunities.
Elements of the Succession Planning Model
Communicate Possible Opportunities
Identify Who Is Interested
Assess Competency Readiness
Prepare Development Plans
Provide Development Opportunities
I. Communicate Possible Opportunities
Inform employees of the succession planning process.
Inform employees of possible job opportunities anticipated over a designated time period.
Communicate the key competencies required for those jobs.
II. Identify Who Is Interested
Open it up. Give employees the opportunity to indicate their interest in possible job openings and a willingness to participate in succession planning activities.
Clarify that participation in succession planning is not a guarantee of advancement.
Establish a data base.
III. Assess Competency Readiness
Assess individuals’ readiness to assume the job responsibilities in which they have indicated an interest.
Clearly define the career path an individual can take.
Identify competencies that may require development to prepare an employee for a job or occupation.
IV. Prepare Development Plans
With the employee, prepare an individual development plan outlining specific activities for developing competencies.
List these activities in the employee’s development plan - with a timetable.
Prepare a group development plan for core competencies that are applicable to a particular occupation level, open to the participation of all interested employees.
V. Provide Development Opportunities
Help employees in following through with their development plan by providing training options and a realistic timetable for completing all training activities outlined in their development plan.
Point out the employee’s personal responsibility for taking the initiative and seeking out activities to develop their targeted competencies.
Point out that development options extend beyond the traditional classroom setting and do not have to be costly.
VI. Formalize Eligibility
Avenues for increasing an employee’s ability to formalize their eligibility:
Use of “in-training” program which brings an employee in at lower levels, then allows automatic advancement (career ladder).
Use of competency-based classification structures.
Revision of current job descriptions to allow TYC training and experience to meet minimum qualifications.
Revision of job descriptions to open qualifications and encourage cross-training.
Questions for Eric ?
TEXAS DEPARTMENT OF INSURANCE SUCCESSION PLANNING OVERVIEW Albert Betts, Jr. Senior Associate Commissioner Chief of Staff
Questions for Albert ?
TEXAS DEPARTMENT OF BANKING STRATEGIC WORKFORCE PLANNING Stephanie S. Newberg Deputy Commissioner
The Department of Banking
A regulatory agency with 159 authorized FTEs. (approximately 75% financial examiners or related directors)
Major function to regulate state chartered banks, prepaid funeral contract sellers, perpetual care cemeteries, check sellers, currency transmitters and private child support enforcement agencies.
Current annual appropriations - $11.3 million.
Considered self funded – regulated industries fees must pay for all our expenditures.
Caught Off Guard
In October 2000, our monthly turnover reached a new high for examiners with 1-4 years experience.
Lost eight examiners to our federal counterparts, not for promotions but same duty type positions.
Determined for the three period ending August 31, 2000, we had lost 41 examiners for an overall turnover rate of 48%.
We could no longer meet statutory mandate to complete regulatory examinations.
Caught Off Guard
Performed salary parity study and determined our examiners paid approximately $10,000 less than federal counterparts.
Requested and received permission to exceed salary cap.
Enlisted help of trade associations and regulated industries.